As part of its Q3 FY2013 financial results announcement Sony Corporation today revealed that it plans to sell off its VAIO PC business to Japan Industrial Partners. The two companies hope to reach a definitive agreement by the end of March 2014. Sony cites the “drastic changes in the global PC industry” as the key driver in its decision to get out of the PC business:
Following a comprehensive analysis of factors, including the drastic changes in the global PC industry, Sony’s overall business portfolio and strategy, the need for continued support of Sony’s valued VAIO customers, and future employment opportunities for personnel involved in the VAIO business, the Company has determined that concentrating its mobile product lineup on smartphones and tablets and transferring its PC business to a new company established by JIP is the optimal solution. Sony and JIP will now proceed with due diligence and negotiate detailed terms and conditions of the business transfer, targeting the conclusion of a definitive agreement by the end of March 2014. Following reevaluation of the product lineup, the new company is expected initially to concentrate on sales of consumer and corporate PCs in the Japanese market and seek to optimize its sales channels and scale of operations, while evaluating possible further geographic expansion.
Sony’s decision affects all aspects of its PC business. It will stop designing, manufacturing and selling PCs with the introduction of its Spring 2014 PC lineup.
The sale of this entire division will allow Sony to shed some 5,000 jobs as it strives to return to profitability by focusing on its Xperia smartphones and tablets and other profitable product lines. Japan Industrial Partners will only take on some 300 staff as it will focus solely on the Japanese market initially.
Source : Sony